Question: My apartment flooded due to a lack of maintenance from the OC. Is it reasonable to hold the OC liable for the damage?
My apartment recently experienced water damage due to overflowing gutters during heavy rain. The property manager and I submitted a claim for $1400 to my landlord insurer to cover the cost of lifting, drying, and deodorising the damaged carpet. The insurer denied the claim because a plumber’s report linked the flooding to clogged gutters with leaves and debris. We believe the lack of gutter maintenance by the owners corporation (OC) caused the issue. The OC has now confirmed they will clean the gutters every six months.
Is my claim against the OC for reimbursement of the repair costs reasonable given the situation?
Answer: Pursuing a claim on the contents insurance policy is standard procedure. If the contents insurer believes the OC is responsible, they can pursue a claim against the OC.
In situations where a property manager and a tenant lodge a claim for damages caused by the owners corporation’s failure to maintain common property, such as clearing gutters, there are several important steps to consider.
First, it is advisable to pursue a claim on the contents insurance policy. If the contents insurer believes the owners corporation is responsible for the damage, they can pursue a claim against the owners corporation. This is typically the standard procedure followed in such cases.
Leaks from common property, including issues like blocked gutters, are generally covered by contents insurance policies. It seems unusual for the contents insurer to deny the claim due to a common property leak, therefore, understanding the specific reasons for the denial of the claim is crucial.
I first recommend asking for a formal denial letter that clearly outlinies the reasons for denying your claim. Make sure this letter references specific clauses in your insurance policy. If you believe the insurer has not provided sufficient grounds to deny your claim, you should consider challenging the decision via the insurer’s dispute resolution process.
Alternatively, if the owners corporation is believed to be liable, a claim can be pursued against them through the processes advised by Fair Trading: Strata disputes.
This post appears in the August 2024 edition of The NSW Strata Magazine.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.